Charges Stemmed From $1.2 Million Mortgage Fraud Scheme

Published: March 01, 2012

http://www2.nbc4i.com/news/2012/mar/01/dublin-man-pleads-guilty-money-laundering-charges-ar-949909/

COLUMBUS, Ohio --A Dublin man has pleaded guilty to one count of money laundering related to a $1,297,400 mortgage fraud scheme.

Warren A. Coman, II, 29, of Dublin, was a mortgage processor. Investigators said Coman, along with others, recruited to buy or assisted purchasers in buying properties owned by other individuals.

According to court documents, between October 6, 2006 and August 2, 2007, Warren Coman, II, operating as WC Enterprises and Cynco Properties, LLC, committed mortgage fraud in an effort to collect money generated through fraudulently obtained mortgage loans.

According to the IRS, Coman was aware or should have been aware of the fact that the purchasers of the properties were not qualified to obtain the loans required to purchase these investment properties.

To facilitate the property sales to the unqualified purchasers, Coman falsified the income, assets, and employment history of the prospective purchasers on their Uniform Residential Loan Applications, so that they appeared to meet lender’s qualifications.

Coman purchased and provided the official checks necessary for the down payments of the purchasers, despite knowing that lenders believed that the down payments were being provided by the purchasers.

Coman understood that the HUD-1 statements provided to the lenders disclosed that the home buyers were providing the down payments.

The ultimate purpose of these misrepresentations was to obtain loans for the purchase of homes by unqualified buyers and to facilitate the payment of the excess sales proceeds to the property owners and other associates.

After the sales of these properties were completed, Coman received cash payments from the property owners to compensate him for the purchase of the down payment checks and provide him with bonuses, even though these payments were not disclosed on the HUD-1 Settlement Statements associated with these property sales.

“By now, there have been enough mortgage fraud related convictions around the country that those who are thinking about doing it ought to know that they are going to get caught,” stated by Darryl Williams, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.

As a result of Coman’s participation in this mortgage fraud scheme, various financial and lending institutions incurred financial losses of approximately $942,101.

Coman faces a maximum prison sentence of 10 years, a fine of up to $250,000, or twice the value of the property involved in the transaction, whichever is greater, and will be ordered to pay restitution to the victims of his crimes in the amount of approximately $942,101.

Coman was released on bond.  A sentencing date has yet to be set.